<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2007-07-09</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000897893</issuerCik>
        <issuerName>PEERLESS SYSTEMS CORP</issuerName>
        <issuerTradingSymbol>PRLS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001374187</rptOwnerCik>
            <rptOwnerName>Brog Timothy E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O PEERLESS SYSTEMS CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>2381 ROSECRANS AVENUE</rptOwnerStreet2>
            <rptOwnerCity>EL SEGUNDO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>90245</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>COMMON STOCK</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>45300</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Although Mr. Brog is the sole manager of E2 Investment Partners LLC, he is not a member of E2.  E2 owns 1,011,460 shares of
 Common Stock.  Mr. Brog disclaims beneficial ownership to the shares owned by E2.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Timothy Brog</signatureName>
        <signatureDate>2007-07-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
